2020 has changed the way we do business

COVID-19 has, almost overnight has changed the reality of business. Customer’s incomes have been squeezed, the lack of personal interaction has impacted the closing of sales, and some facilities have and will see their core value proposition become less important.

The health and safety of employees, customers and their families is the priority, but from a business perspective, the COVID-19 pandemic is turning the global economy upside down.

Storage facilities need to sustain value, be flexible and creative in supporting customers in this tough time by working with them to weather the fall out of this crisis together.

Many facilities are lucky so far not to have been directly affected by COVID-19, but they may still feel the impact of a general slowdown as time goes on.

The crisis is exerting sudden and unprecedented pressures — sometimes up, but more often down — on demand and pricing. You may find that customers are asking for discounts and contract renegotiations, while some competitors may be making aggressive pricing decisions.

Now is the time to ensure that your sales and front of house team receive updated training in negotiation, value selling, and pricing. The winners will be looking for customers’ shortterm pain points and offer solutions without destroying long-term value. It may mean providing temporary pricing or volume relief. But be wary of discounting as it can become a habit that can be hard to remove. When facilities who routinely discount deals by 25% or more, a lot of that discounting is just habit rather than strategically crucial in the negotiation. If you are suggesting discounting that is outside your standard offers, put the appropriate approvals and training in place to ensure discounting behaviour remains responsible and strategic.

Another idea, instead of slashing prices, consider temporary promotions, non-monetary discounts, or discounts that help fill space. Look at where your availabilities are now and incentivise those and then try to upsell. You don’t need to look at your competitors and try to replicate their offerings to stay on the same playing field. You need to understand your facility’s position in the marketplace. Be on the front foot and anticipate competitors’ likely reactions, and plan how to respond. Price cuts may be easy to replicate, but they can change clients long-term perceptions of brand value, and perception is the key.

Look for opportunities that preserve and sustain value. Ensure each significant decision you make in the coming months is mindful on the longer-term implications for the company and its employees and customers. If you can find win-win scenarios to support customers and employees during this challenging time by remaining flexible and focused, you will preserve the business. l

Merry ChristmasFROM OUR SECURITY TEAM TO YOU!